Original-Research: MLP SE (von NuWays AG): Buy
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Original-Research: MLP SE - from NuWays AG
12.12.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.
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Classification of NuWays AG to MLP SE
Company Name: MLP SE
ISIN: DE0006569908
Reason for the research: Update
Recommendation: Buy
from: 12.12.2024
Target price: EUR 12.00
Target price on sight of: 12 months
Last rating change:
Analyst: Henry Wendisch
Strategy roundup: AuM growth, corporate clients & digitalization
Topic: earlier this week, we attended an analyst dialogue with MLP's
C-level. Here are our key takeaways:
AuM strategy: having shown a 10% AuM growth CAGR (FY'20-9M'24), MLP should
continue to maintain this high level of growth, due to several reasons: (1)
First, steady inflows from 83k customers (eNuW) with an average monthly
savings plan of EUR 500 currently contribute EUR 0.5bn annually to the now EUR
61bn total AuM. Especially the young customers show an above average
behaviour, as 70% of young customers have a savings plan with MLP. (2)
Secondly, an incoming wave of inheritamces in Germany should create demand
for wealth management solutions. Here MLP is especially well positioned
having a mass-affluent customer base with a largely academic background,
which often also holds true for the respective testators. (3) Thirdly, a
meaningful part of MLP customers are expecting payouts from expiring life
insurance policies, which create a cash influx for which a suitable
investment strategy is offered by MLP. On group level, MLP is well
positioned to service the growing demand for wealth management with its own
banking business (bank and custody accounts for savings plans), but also
benefits from
FERI's strong wealth management and multi-asset expertise which offers all
services together with the MLP consultant.
Corporate client strategy: MLP's corporate client strategy focuses on
insurance solutions for corporates, especially corporate pension schemes,
health insurance and employee benefits (under the brand TPC and :pxtra) as
well as corporate insurance brokerage (under RVM), the latter serving as a
competence centre for highly specialized industrial insurances. Here,
referrals within the MLP group (e.g. from wealth management to industrial
brokerage or vice versa) seems to be working well, which was shown by 10x
increase in RVM mandates diverted from within the group since 2021.
Digitalisation: MLP continues to digitize in all areas, but we shed the
light on two examples.
(1) a more digital customer experience. First, it is not designed to move
away from a personal consulting through the MLP consultant, but rather to
complement the consulting approach in a more digital customer experience,
ultimately improving the customer satisfaction and preventing potential
churn via the MLP Financial Home (client portal showcasing the client's
asset structure and insurance contracts). Moreover, the incorporated gap
analysis showcases the consultant as well as the client a potential
underinsurance or the need for action in order to reach the personal
financial goal and protection.
(2) busines automation. Secondly, the effective use of automation as well as
the company internal AI assistance (similar to 'ChatGPT') serves as a key
enabler of more efficient procceses, but also serves as a digital database
of the profound and interdisciplinary knowledge across the group. For
example, the claims management for claims below EUR 5k at the underwriting
agent DOMCURA is fully digitized and reduced the processing time by more
than 90% (eNuW). Here, the 'Claims-AI' (introduced in July 2024) handles
incoming claims, assesses the situation, matches and cross-checks the
written text with pictures attached and creates a recommendation for the
clerk with a ready to send reply within seconds. All the clerk has to do is
to approve it. Moreover, this has reduced the claims backlog by more than
80% within a few months.
Looking ahead, MLP will announce new mid-term (2028e) targets with FY'24
results on 13th March 2025, as the old mid-term 2025 targets will be next
year's guidance. The new targets should be 'no less ambitious than our
previous medium-term planning' according to the CFO Reinhard Loose.
Consequently the announcement should serve as a catalyst for the stock, as
MLP's underlying financial performance over the last years does not match
the share price development, in our view. Thus, we reiterate BUY with
unchanged PT of EUR 12.00, based on FCFY'24e.
You can download the research here: http://www.more-ir.de/d/31531.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed
Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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2049503 12.12.2024 CET/CEST
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